What is the expense ratio of AGG vs VWO?

AGG has an expense ratio of 0.03%, while VWO has an expense ratio of 0.06%.

AGG vs VWO

iShares Core US Aggregate Bond ETF vs Vanguard Emerging Markets Stock Index Fund

Last updated: 2026-04-02

AGG iShares

iShares Core US Aggregate Bond ETF (AGG) is an exchange-traded fund issued by iShares that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.94%. Launched in 2003, the fund has a 23-year track record.

AUM: $137.9B ER: 0.03% Yield: 3.94% Since: Sep 22, 2003

VWO Vanguard

Vanguard Emerging Markets Stock Index Fund (VWO) is an exchange-traded fund issued by Vanguard that provides exposure to stocks in emerging market economies with higher growth potential. It charges a low expense ratio of 0.06%. The fund offers an attractive dividend yield of 2.76%. Launched in 2005, the fund has a 21-year track record.

AUM: $107.3B ER: 0.06% Yield: 2.76% Since: Mar 4, 2005

Quick Verdict

AGG has a slightly lower expense ratio (0.03% vs 0.06%), saving about $60 per $10,000 over 10 years. Over the past year, VWO has significantly outperformed with a 19.4% return vs 0.0%. Income investors may prefer AGG for its higher yield (3.9% vs 2.8%).

Key Metrics

Metric	AGG	VWO
Expense Ratio	0.03%	0.06%
Dividend Yield	3.9%	2.8%
Fund Family	iShares	Vanguard
Category	US Aggregate Bond	Emerging Markets

Performance Chart

Indexed to 100 at start (5-year comparison)

AGG -13.0%

VWO +3.0%

Performance Comparison

Period	AGG	VWO	Difference
1 Month	-1.67%	-5.29%	+3.62%
3 Months	-0.85%	-1.31%	+0.46%
6 Months	-1.18%	-1.06%	-0.12%
YTD	-0.85%	-1.31%	+0.46%
1 Year	+0.04%	+19.38%	-19.34%
3 Years	-0.82%	+33.62%	-34.44%
5 Years	-13.01%	+3.00%	-16.01%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	AGG Fees	VWO Fees	You Save
$10.000	10 years	$60	$120	$60
$10.000	20 years	$258	$515	$257
$10.000	30 years	$835	$1.664	$828
$50.000	10 years	$299	$598	$299
$50.000	30 years	$4.176	$8.318	$4.142
$100.000	30 years	$8.352	$16.637	$8.285

Risk Metrics

Based on 5 years of daily returns

Metric	AGG	VWO
Annualized Volatility	6.1%	17.3%
Max Drawdown	-21.4%	-35.9%
Sharpe Ratio	-1.17	-0.14

Dividend Comparison

Metric	AGG	VWO
Annual Dividend (per share)	$3.90	$1.45
Dividend Yield	3.94%	2.68%
Distribution Frequency	Monthly	Quarterly

Top Holdings

VWO Top Holdings

Name	Weight
Taiwan Semiconductor Manufacturing Company Limited!tpe/2330	12.71%
Tencent Holdings Limited!hkg/0700	3.44%
Alibaba Group Holding Limited!hkg/9988	2.74%
HDFC Bank Limited!nse/HDFCBANK	0.93%
Reliance Industries Limited!nse/RELIANCE	0.88%
Hon Hai Precision Industry Co., Ltd.!tpe/2317	0.78%
MediaTek Inc.!tpe/2454	0.76%
China Construction Bank Corporation!hkg/0939	0.75%

Which One Should You Choose?

Choose AGG if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose VWO if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose AGG if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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